The Impact Of Transaction Characteristics On M&A Performance

M&A is the necessary requirement for economic upgrading, industry integration and enterprise development. Due to the low evaluation, flexible system, the new OTC market、gem, growth enterprise market and SME board has become a new popular M&A spot. Different board has different trading characteristics. Meanwhile one thing cannot ignore is the failure rate, which is up to 40 percent. And mostly is due to the failure in integration. Therefore, only the long-term performance can show the enterprise’s M&A performance.Through literature research, we points out that the main problem of current M&A research is the confusion of corporate life cycle and industry life cycle. There are many differences in the two different life cycle, but only the perspective of corporate life cycle can guide the individual’s M&A activities. Then put forward the research of the impact of transaction characteristics on M&A Performance -- Based on the perspective of corporate life cycle. The conclusion can guide us to choose the most suitable transaction characteristics to meet the need of the different life cycle stage.We choose 648 cases in 2011 as the research object, and use SPSS to analyze the data, including factor analysis and T test. Among the three stages, the performance of the growth stage is significantly better than that of the mature period and decline stage. But there is no significant difference between the performance of the mature period and the decline stage. Based on the life cycle of the different transaction characteristics, enterprises in the growth period seem to develop better when choosing cash payment, while the mature period is significantly better choosing stock payment. There are no significant differences in two kinds of payment methods during the recession period. In the related attributes, three fifferent stage’s performance of non-affiliated transactions are all significantly better than the performance of the related party transactions. In M&A type, the growth period and the mature period have significantly better than the performance when adopt the equity acquisition. But there are no significant differences between the two M&A types during the recession period.After empirical analysis, we use BlueFocus Huapoint LifeScience、 Hongda High-Tech three cases representing growth period, maturity, recession respective. And analyzes the transaction characteristics of the three cases, and further deepens the research conclusion.Finally, the paper give some recommendation through perspectives of government, enterprises and investors. Government, needs to improve the disclosure of information, promote the effective disclosure of related transactions, and also need to make relevant rules. Enterprises, on the one hand, should identify their own stage and rationally choose M&A strategy, and also need to focus on intergration in order to effectively optimize of resource structure; on the other hand, enterprises need to strengthen the construction sincerity construction and do better in their own information disclosure. Investors, on the one hand, need to learn systematically and avoid blindness; on the other hand, strengthen the supervision of the industry, and effectively promote the information disclosure.